Sir Bill Gammell, the former Scottish rugby international who founded oil explorer Cairn Energy, was handed more than £5m in cash and shares last year despite a row with investors over payments to the former chief executive.

Gammell had been due to receive £2.5m of free shares for securing the lucrative sale of the Indian operations last year but was forced to withdraw the payments in January when it became apparent investors would vote down the one-off bonus.

But while the annual report released on Tuesday showed that the one-off pay scheme had been dropped, other incentive plans were released to Gammell, who has now become chairman.

Unusually, he was handed £1.4m for "loss of office" — even though he is staying as chairman — on top of his £312,000 salary. Two sets of long-term share-based incentive plans also were released to him, worth almost £3.5m.

In total the company admitted to a bill of £3.6m in "loss of office" payments as former directors Malcolm Thoms and Phil Tracy were handed £1.2m and £923,000 respectively when they left last June. They both also received more than £2m each from long-term incentive plans that vested during the year.

The company has previously said that the contractual payment of £1.4m to Gammell for "loss of office" was necessary because it was in the midst of a restructuring, with its part of Cairn India being sold to Vedanta, and it wanted to motivate Gammell to get the deal done by 15 December – a date which was later than expected because it had been delayed by regulatory requirements in India.